Shropshire Star

£600m deal for Wrekin Housing Trust

Wrekin Housing Trust has fully restructured its corporate financing in a deal worth in excess of £600m.

Published

On top of flexible banking facilities a new bond has been issued on the London Stock Exchange.

The S&P A rated Group achieved a £250m, 29-year bond, of which £50m is retained, priced relative to Gilts at + 148 bps, with a coupon of 2.50 per cent and is backed by a number of institutional investors.

The Group’s £400m banking facilities are shared between Allied Irish Bank, Natwest, Santander, Lloyds and the First Abu Dhabi Bank (FAB).

The refinancing enables the group to embark on a cross cutting investment programme. The programme will include further upgrades to existing stock and also enabling the development of more than 3,000 new homes across Telford & Wrekin, Shropshire and Staffordshire.

The group also hopes to use funds towards its care solutions and social enterprises.

Group chief executive Wayne Gethings said: “Closing this refinancing deal enables us to continue to make a difference to people’s lives, as we embark on a series of investments in our existing homes, as well as a new development programme that will see us grow our total stock by over 3,000 homes by 2025.”

Executive director of finance Francis Best added: “The refinancing package puts the Group on a firm long-term footing. We can now invest confidently enabling us to work with our partners to have a positive impact on local communities.”